Republic of China: Ace Pilot
Chapter 714 Nationalist Government Aircraft Corruption, Negotiation Meeting with the United States
The two members of the Aviation Commission left; it was almost dark by then.
Fang Wen picked up his coat and suitcase containing his personal belongings, and said to Sun Debiao and Gong Xiuneng, "Go to the office hotel to rest and get some rest. There will be a lot of work to do starting tomorrow."
The hotel is located not far from the airport fence. It is a two-story brick building with a wooden sign that reads "Taishan Airlines Chongqing Office" hanging at the entrance.
Upon seeing Fang Wen and his group arrive, the office manager hurriedly came forward to greet them: "General Manager, your rooms are in the back."
The three followed the manager to a detached building behind the hotel and checked into a comfortable luxury private room.
Before the person could even sit down, the manager came running over again.
"A guest surnamed Quan is looking for you, saying he is an old acquaintance of yours."
The surname is Quan? Fang Wen only knows one person with this surname.
"Let him come."
After the manager left, a short while later, a middle-aged man wearing a dark blue silk mandarin jacket and a top hat walked in.
"Fang Wen, how have you been?"
“Quan Yuncai!” Fang Wen recognized the other person. This man was the Chen family’s front man. Back then, when Taishan Airlines was affiliated with the Chen family for development, he was the major shareholder on their behalf.
After that, we parted ways in Wuhan and never saw each other again.
Fang Wen shook hands with him and said with a smile, "Long time no see."
The National Games host was filled with emotion, saying, "Yes, it's only now that we've met again after parting ways in Wuhan."
"Are you still working for the Chen family?"
"Yes. You were born to be a strategist, unlike you, who can survive anywhere. To be honest, I wasn't very optimistic when you moved the company south, but I never expected you to have such a big and powerful business now. Besides, you're both a scholar and a warrior, and you even led troops to fight the Japanese in the south. I'm really impressed."
"It's all about human effort, isn't it? How did you know I was in Chongqing?"
"It was quite a coincidence. I just flew in from Chengdu and was planning to stay overnight at your hotel when I saw you come in."
The two chatted about the past, then Quan Yun suddenly changed the subject, his gaze sweeping across the dark night outside the window, his tone becoming more serious: "Fang Wen, are you going to the Aviation Commission's procurement negotiation meeting tomorrow?"
Fang Wen paused, holding his teacup, and said calmly, "I just heard the news. It was arranged by the committee at the last minute. They said people from Curtiss-Wright Corporation are here to discuss the purchase of P-40s, so they asked me to participate as well. Is there something going on here?"
"That's a huge deal!" Quan Yuncai leaned back in his chair, arms crossed. "I know a thing or two about all the big and small things in government. I even had some dealings with a few people from the Aviation Commission recently, and I heard some things from them. There's a lot of money involved in the P-40 procurement. What do you think they mean by letting you participate?"
To this, Fang Wen calmly replied, "I have no idea what your brilliant idea is."
Quan Yuncai remained silent, yet he couldn't help but speak up.
“Hey, brother, I know you’re an open-minded person and you hate crooked ways. But there are all sorts of people and things in this world, and even if you don’t like it, you have to accept it. Let me tell you this: the Curtiss-Wright quoted a price of over $40,000 per P-40 fighter jet for this purchase, but I heard that the actual selling price is at most $30,000, which is more than $10,000 more.”
At this point, Quan Yuncai sneered, "The $12,000 in there is an intermediary fee, and there is also a 15% public relations fee, which is about five or six thousand dollars."
"Is that so?" Fang Wen feigned surprise. "Military aircraft procurement is a matter of national importance, and nobody cares?"
“Manage? Who’s in charge?” Quan Yuncai spread his hands, his tone full of helplessness. “With the country in crisis, everyone from top to bottom wants a piece of the pie. Last month, someone who was dissatisfied tried to submit a memorial to the higher authorities, but the next day he was accused of ‘colluding with the enemy’ and was taken away. There’s been no news of him since.”
He paused, then added, "And I've heard even more outrageous claims. This batch of P-40s isn't even new aircraft currently in service with the US military; they're old aircraft that have been phased out and sold as new after some parts have been replaced."
Gong Xiuneng clenched his fists and said in a low voice, "Isn't this playing with the lives of frontline pilots?"
“That’s right!” Quan Yuncai sighed. “The brothers on the front lines are flying these old planes and fighting the Japanese to the death. What if they break down? Nobody can help them. These people are making a fortune off the national crisis by selling arms. I came to see you today to remind you to keep quiet at tomorrow’s meeting and not get involved, lest you get yourself into trouble. By the way, I’ve figured it out. Taishan Military Industry is also an aircraft supplier. If they want to use you as a cover…”
Fang Wen was silent for a moment, then looked up at Quan Yuncai and said sincerely, "Thank you for reminding me, I understand now. But I have another question for you, please answer it."
"You said."
"Were those Soviet military aircraft also embezzled?"
Quan Yuncai sighed: "You're the only outsider who doesn't know about this. You've already said everything you should and shouldn't have said today, so what's a little more?"
He simply told Fang Wen a secret that ordinary people didn't know.
Two years ago, the Nationalist government borrowed 250 million euros in low-interest loans from the Soviet Union to purchase military equipment, including hundreds of military aircraft of various types, such as the Il-15 biplane fighter, the Il-16 monoplane fighter, and the SB-3 bomber.
At that time, Yang Jie served as the Deputy Chief of Staff of the Military Commission of the National Government and the Ambassador to the Soviet Union, responsible for liaising with the Soviet Union for military aid.
During an inspection of the newly purchased Soviet aircraft by the Aviation Committee, it was discovered that several of them were replaced with scrapped aircraft, and their performance was seriously substandard.
After Yang Jie truthfully reported to Chiang Kai-shek, he offended Kong and Song, who were in charge of the Aviation Commission at the time.
Subsequently, members of the four major families falsely accused Yang Jie of embezzling public funds during the construction of Nanjing's defense fortifications. Chiang Kai-shek ultimately executed two of Yang Jie's quartermasters as scapegoats, hastily closing the case.
The corruption surrounding the purchase of Soviet aircraft was thus dropped.
After finishing this, Quan Yun got up.
"Alright, that's all for tonight. If you want to catch up with me later, go to No. 192 Shangqingsi. That's my home in Chongqing."
Fang Wen got up and saw him out. Before leaving, Quan Yuncai reminded Fang Wen to be careful.
After seeing off the National Games talent, silence fell over the room.
Sun Debiao spoke first: "President Fang, should we investigate this matter? If what Mr. Quan said is true, and there is a problem with this batch of P-40s, the losses on the front line will be huge."
Gong Xiuneng echoed, "Yes, we can't let them continue like this."
Fang Wen walked to the window and looked at the searchlights of the airport in the distance. What Quan Yun had just said was a systemic and institutionalized problem of corruption, which was one of the important reasons why the Kuomintang regime eventually lost the support of the people and collapsed.
He said slowly, "What if everyone involved took money? What if the highest-ranking people were also involved?"
These words sent chills down the spines of Sun Debiao and Gong Xiuneng.
The next morning.
After having breakfast, Fang Wen and his group boarded the old-fashioned car prepared by the office.
The black Stipunk drove along the bumpy dirt road toward the city. The road ahead was full of potholes filled with gravel and sand, and the wheels rattled and clanged as they rolled over the gravel.
The farmland on both sides was deserted, and occasionally there were ragged farmers in the dilapidated rural houses, staring blankly at the vehicles speeding by.
About an hour later, the jeep arrived at the dock on the Jialing River. There were only two ferries on the river, and the decks were packed with people crossing the river to go home, soldiers carrying guns, and merchants carrying cargo boxes.
On the riverbank, a gangster shouted in Sichuan dialect: "Two trips this morning. If you want to go, hurry up and buy your tickets. I'm risking my life to earn this money. Any bastard who dares to skip the ticket will be thrown into the river."
Fang Wen stopped the car, and he, Gong Xiuneng, and Sun Debiao got out, then had the accompanying driver drive back.
Afterwards, I bought three tickets and queued up to board the ferry.
The ferry was crowded. Gong Xiuneng and Sun Debiao stood on either side of Fang Wen, creating a space for him. Seeing this, the others did not dare to approach, making the spot where Fang Wen stood stand out.
Fang Wen looked up and gazed at the urban area of Chongqing.
The houses built against the mountain are lined up one after another, mostly low buildings with blue bricks and gray tiles. Many roofs still bear the scorched marks from the bombing, and temporary sheds are interspersed among the broken walls and ruins.
(The Chongqing docks at that time)
After a while, the ferry docked, and people stepped ashore on wooden planks.
Fang Wen and his two companions followed the flow of people to the dock on the other side.
The group walked up the stone steps.
The streets were narrow and crowded, and most of the shops on both sides were half-open, with vendors hawking their wares along the roadside.
Despite facing daily bombing by the Japanese army, the people of the mountain town persevered and lived on.
Go uphill, then uphill again, and after passing through several streets and alleys, you arrive at the area where the Aviation Commission is located.
Security here is noticeably tighter, with checkpoints at intersections and soldiers armed with guns, checking the credentials of everyone entering and leaving.
After Fang Wen identified himself to the sentry, an officer from the Aviation Commission came out to greet him. "Mr. Fang, the meeting is about to begin. The American representatives and the commission's chief officials are all present. Let's enter the air-raid shelter through the side door."
The entrance to the air-raid shelter is hidden behind a two-story office building, with a sign posted at the entrance that reads "Military restricted area, entry prohibited".
As you descend the steep stone steps, the dampness intensifies. Kerosene lamps hang on the walls, their dim light barely illuminating the path ahead. The stone slabs underfoot are incredibly slippery, with occasional drops of water visible.
After walking about a hundred meters, the space suddenly opened up, revealing a spacious cave that had been converted into a temporary meeting room. In the center was a long wooden table, with several rattan chairs scattered around it. Tea and documents were on the table, and several gas masks were piled up in the corner.
There were already quite a few people in the conference room at this time.
Three people were sitting on the left: two blond-haired, blue-eyed Americans, one of their translators, and the middle-aged American man in the lead, wearing a suit and tie with the Curtiss-Wright Company badge pinned to his chest. He looked arrogant and was talking in a low voice to the translator next to him.
On the right are officials from the Aviation Commission, led by Major General Zhou, the Quartermaster General, who is dressed in a crisp military uniform with medals on his chest and a formulaic smile on his face. Several staff officers and recorders sit beside him.
"Fang Wen, you've arrived. Please have a seat." Director Zhou stood up to greet him. "Let me introduce you. These two are representatives from Curtiss-Wright Corporation of the United States, Mr. Johnson and Mr. Reed, who are in charge of the procurement of P-40 fighter jets."
Johnson stood up and shook hands with Fang Wen. "Mr. Fang, I've heard of you before. Your company produces the Xuanming seaplane for Pan Am, and it's excellent."
His Chinese was not fluent, so he used English for the second half of the sentence, which was relayed by a translator.
Fang Wen nodded slightly and sat down without making a sound.
The negotiation meeting began soon.
Director Zhou presided over the meeting, saying, "Gentlemen, the situation on the front lines is currently critical, and our army urgently needs advanced fighter jets to replenish its combat power. The Curtiss-Wright P-40 has excellent performance, and the committee plans to purchase 100 of them. Today, we will mainly discuss the price, delivery time, and related terms. In addition, General Manager Fang from Taishan Military Industry is also here today to discuss follow-up matters regarding the gunboat aircraft."
Upon hearing this, Johnson gestured to the translator to hand over a document: "General Zhou, we have drafted a contract. The unit price for each P-40 is US$55,000, including the fuselage, engine and supporting parts. The delivery time is within three months after the contract is signed. The aircraft will be transported to Yangon, Myanmar in three batches, and then transferred to China by your side."
The offer of $55,000 is outrageously high.
Fang Wen picked up his teacup, savored the tea, and waited to watch the show.
Director Zhou slowly began, “Mr. Johnson, as far as I know, the unit price of the P-40 currently in service with the US military is only $30,000. Why is your company’s quote to us 40% higher?”
Johnson paused for a moment, then recovered and explained with a touch of arrogance, “The United States is currently prohibited from selling military supplies to belligerent countries due to the Neutrality Act. In order to successfully sell these aircraft to you, we need to lobby many members of Congress. In addition, these aircraft are specially made for your country, optimized for the southwest climate, and include subsequent maintenance and technical support, so the additional costs are naturally higher.”
"Specially made?" Fang Wen put down his teacup, his tone tinged with sarcasm. "I'm curious what kind of specially made modification can sell for $5."
Upon hearing this, the officials from the Aviation Commission displayed varying expressions, and Johnson's expression also became serious: "Mr. Fang, our aircraft are the best, and we will also provide subsequent spare parts for maintenance and replacement. Furthermore, the types of aircraft we sell do not conflict, so I hope you will not interfere with my negotiations with Director Zhou."
Fang Wen nodded: "Sorry, I misspoke. Please continue."
Subsequently, the two sides engaged in some 'intense' negotiations regarding the P40.
Thanks to Director Zhou's efforts, the price of the aircraft was successfully reduced from $55,000 to $44,000.
The negotiations were clearly very successful. The Curtiss-Wright representatives shook hands with Director Zhou and left satisfied.
After they left, Director Zhou smiled and looked at Fang Wen.
"Then let's move on to the second topic, regarding the gunboats from your Taishan Military Industry. Could you offer a lower price?"
Fang Wen almost laughed out of anger. He sold the planes to the Nationalist government and was responsible for training dozens of pilots. He never thought of making a fortune.
He looked at Director Zhou and said, "I sold gunboats and aircraft to Europeans, the British, the French, and the Spanish, for over $3 each. But to the Nationalist government, it was only 6 French francs, which is equivalent to $2. That's the lowest price I could get; any lower and it won't do."
The aviation committee remained silent on this matter.
They clearly didn't want a lower price from Fang Wen; they wanted more profit.
After all, the purchase of gunboats and aircraft was initiated by the Nationalist government, and Fang Wen did not offer any benefits.
This is probably the most economical purchase ever made by the National Air Force.
After a while, Director Zhou coughed and said, "Alright then, let's keep the price as it is, but we're short on funds right now. Could you extend the payment period?"
"How can we relax the restrictions?" Fang Wen asked.
"Settlement is made quarterly, in four installments."
With this payment method, it will take a year to get the full amount back.
Should we accept this payment method?
Fang Wen remembered the purpose of his trip to Chongqing.
He then replied, "Then you'll have to do me a favor." (End of Chapter)
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